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Framework
February 2016
The Secretary
Department of Treasury and Finance
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Melbourne Victoria 3002
Australia
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ISBN 978-1-922222-72-5 (online)
Published February 2016
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Contents
1.
2.
3.
4.
Key terms/definitions ............................................................................ 22
Appendix 1 Mandatory requirements ........................................................... 24
Appendix 2 - Guidance ..................................................................................... 29
1.
1.1
The AMAF is complemented by a suite of other government resource allocation and asset-related
policies and frameworks that Accountable Officers must consider when supporting their
organisations service delivery and asset management. Figure 1 illustrates how the AMAF fits
within the Governments resource management framework, with further detail provided in the
following sections of this document.
Appendix 1 outlines an Accountable Officers mandatory attestation requirements under the
AMAF. Attestation will be mandatory for 2017-18 annual reports.
Figure 1: The relationship between the AMAF and other government policies
1.2
Some assets such as protected transport corridors may be an option to meet a potential future service need and should be evaluated
over the long term.
However, ownership and use of assets is just one mechanism of delivering a service and should
only be considered as one part of broader service delivery planning. Other resources, such as
front-line service delivery staff and contracted non-government organisations, also contribute to
an organisations capacity to deliver its services. Therefore, it is important that Accountable
Officers:
identify their organisations current and future service needs and standards;
plan their organisations services;
consider all means of service delivery available; then
plan and manage their organisations assets and other resources to effectively and efficiently
deliver services;
adequately evaluate and monitor risks to assets and service delivery; and
learn by doing by adapting service delivery and asset management to measured performance
outcomes.
1.3
AMAF principles
The AMAF is based on a set of guiding principles. All asset management decisions should be
guided by these principles:
Service delivery focused (Figure 3)
All asset management activities aim to support service delivery throughout the State.
Planning includes evaluating all potential methods to meet demands for service delivery.
All asset management decisions are based on service delivery needs and outcomes.
Figure 3: Service delivery is at the core of asset management
Whole of life
cycle
Informed
decisionmaking
Integrated
into planning
Service
delivery
Considerate
of all
Government
policies
Responsible
and
accountable
1.4
Outcomes sought
Through the AMAF, and its other asset-related frameworks and policies, the Government aims to:
efficiently provide the services required by Victorians by ensuring that assets are appropriately
planned, built, acquired, used, maintained and exited from or disposed of;
support service delivery by providing the right assets at an appropriate time and location in
appropriate amounts;
enhance the service potential of assets through improved management of the existing asset
base. This includes exercising flexibility to delay asset acquisition, expansion or disposal where
changed circumstances warrant;
maximise value for money, by taking account of the full costs (including embedded option
value) of acquiring, holding, using and disposing of assets throughout their lifecycles, as well as
exploring private sector engagement options;
only acquire assets that are required to support service delivery or cultural outcomes;
manage any associated asset risks efficiently and effectively;
apply lessons from the performance of the existing asset base when considering new
investment; and
consider the use of non-asset service delivery alternatives to minimise demand for new assets.
2.
Non-current physical assets (including ICT assets) have a long life (greater than 12 months). They
consume resources to acquire or create them and keep them in operational condition over their
lifetime.
Many decisions about assets have long-term implications. Figure 4 outlines the key elements of
the AMAF and issues Accountable Officers should consider in managing assets throughout the
lifecycle.
Figure 4: The AMAF asset lifecycle
PLANNING
ACQUISITION
Acquisition process
Risk evaluation
Procurement method
DISPOSAL
Retirement
Replacement
Renewal
Redeployment
OPERATION
Monitoring
Maintenance
Information management
Asset valuation
Utilisation
Functionality
In addition to overarching leadership and accountability elements, the stages through which an
asset generally passes during its life are the:
planning stage, where the need is identified and the requirement for a new asset is planned
for and justified;
acquisition stage, where the asset is purchased, constructed, or otherwise created;
operation stage, where the asset is used for its intended purpose. This stage may be marked
by periodic refurbishment or major repair, requiring the asset to be taken out of service for
periods of time; and
disposal stage, initiated when the economic life of the asset has expired, when there is no
longer a need for the service provided by the asset or the asset in the provision of the service
has disappeared.
The stages of the asset lifecycle align with key stages of the investment lifecycle and high
value/high risk (HVHR) guidelines. However, the investment lifecycle and HVHR guidelines focus
on processes that should be adopted when contemplating investing in new services or assets, or
major upgrades to existing services and assets. The AMAF asset lifecycle outlines processes that
must and should be adopted to manage entire asset bases.
The AMAF applies to all stages of the asset lifecycle, but focuses on requirements for the planning
and operation stages, and leadership and accountability arrangements. Other government policies
and frameworks complement the AMAF across all stages of the lifecycle, particularly the
acquisition and disposal stages. Accountable Officers should be aware of these, and ensure they
comply (if applicable), when undertaking their asset management responsibilities.
Decisions taken about an asset in one stage can affect its performance and costs in others. For
example, inadequate attention to maintenance can accelerate the need for major repairs, or
shorten the operational life of the asset. Conversely, careful management of existing assets can
extend their effective life and avoid or defer the need for new acquisitions. Design and materials
used in the construction of an asset can also affect the operational cost of the asset over its whole
lifecycle. Therefore, all stages of the lifecycle should be considered when making decisions about
an asset or asset management more broadly.
3.
Key requirements
The following sections outline key requirements of the AMAF that Accountable Officers must and
should follow to implement effective asset management systems.
An effective asset management system provides a structured approach for the development,
coordination and control of asset related activities undertaken by an organisation, and for aligning
these activities with the organisations service delivery objectives.
The AMAF applies to an organisations assets as defined under the Australian Accounting
Standards and asset thresholds established by each Accountable Officer. The AMAF is designed to
be flexible enough to serve assets of varying size and function across government that support a
range of service outcomes. Accountable Officers must apply the mandatory requirements of the
AMAF consistent with their organisations asset threshold.
Accountable Officers need to be aware of other requirements (e.g. enabling legislation) that
applies to planning, acquiring, managing, operating and disposing of their organisations assets.
Further guidance on good asset management practices can be found in the international standard
ISO 55000 Asset Management series.
3.1
3.1.1
Overview
Resourcing and skills
Accountable Officers must ensure that asset management functions are established and that their
organisation is appropriately resourced with qualified and skilled asset management staff.
Accountable Officers should determine the resources required (e.g. staff, equipment and
systems), and the skills and education needed by their asset management staff for each stage of
the asset lifecycle. The skills, education and training required will vary depending on existing
capability within the organisation. Where asset management activities are devolved or outsourced
including to entities excluded from the Standing Directions, Accountable Officers must ensure that
contracted service providers or entities excluded from the Standing Directions have arrangements
in place to ensure their staff are appropriately skilled and trained.
Ongoing training and education is required to maintain the appropriate standards of asset
management. This can include encouraging staff to attend relevant training or seminars,
subscribing to relevant publications, on-the-job training and coaching, and engagement with
industry experts.
Management should drive implementation and adherence to the AMAF, the organisations asset
management system and any supporting policies. Management should also drive a culture of
continuous improvement in asset management.
Management should also proactively promote the implementation of the AMAF and asset
management more broadly within the organisation will ensure that asset management adds value
and is not just a compliance process. It should also support the Victorian public sector to deliver
high quality and efficient services to the community.
Without leadership and accountability at all levels in an organisation, but particularly from
management and Accountable Officers, an organisations asset management strategy and service
delivery objectives may be ineffective.
3.1.2
Governance
Accountable Officers must establish appropriate governance frameworks to support the
management of assets in their direct control, as well as being considerate of the governance
frameworks that other organisations within their portfolio have to support management of assets
in their control.
Other policies
Accountable Officers should also consider their organisations alignment with the processes and
principles outlined in the international standard ISO 55000 Asset Management Series, as
appropriate.
10
3.1.3
those Victorian Public Sector agencies that are subject to AMAF (i.e. those that are subject
to the Standing Directions); and
requirements to demonstrate compliance with AMAF, including public attestation in
annual reports.
As part of the Standing Directions, from the conclusion of the 2017-18 financial year, the
Responsible Body must attest in their annual report, that their organisation is compliant with the
requirements of the Standing Directions. The organisations audit committee, or an alternative
review mechanism when there is no audit committee3, must verify this view prior to finalising
attestation. Agencies are also subject to any other requirements under the Directions to ensure
compliance and support the attestation.
Ensuring compliance with the AMAF will require asset management to be overseen by senior staff,
at an appropriate level determined by the Accountable Officer. It will also help ensure that asset
management systems for all stages of an assets lifecycle are appropriately implemented,
reviewed and monitored.
In cases where assets are managed by multiple agencies within a portfolio, Responsible Bodies
may not need to attest to compliance with some mandatory requirements of the framework for
some assets when another agency within the portfolio has a clearly defined responsibility for
meeting that mandatory requirement.
Portfolio relationship
Under section 13A of the Public Administration Act 2004, the Department Head (Secretary) has
responsibilities for advising the portfolio Minister on matters relating to relevant portfolio entities
3
Refer to provisions in the Standing Directions on the role of the Responsible Body when the agency has been exempt from audit
committee requirements..
11
and for working with and providing guidance to these entities. Consistent with this role,
Department Heads are expected to advise the portfolio Minister if any significant asset
management issues relating to their relevant public entities arise, where necessary. This is
separate to attestation.
3.1.4
Performance management
Monitoring asset performance
It is important that asset performance is appropriately and continuously reviewed and evaluated
to verify that required outcomes, including service delivery objectives, are being achieved and
that agencies learn by doing, which supports continuous improvement. In order to assess
whether these objectives are being achieved Accountable Officers should:
identify their organisations service needs and standards;
plan their organisations services;
consider all means of service delivery available; then
identify their organisations asset needs;
establish and set asset standards or benchmarks required to achieve these service objectives;
plan, monitor and manage their organisations assets, including asset-related risks to
effectively deliver services in line with the established standards or benchmarks; and
evaluate performance, the effectiveness of the established standards and benchmarks and,
where appropriate, implement changes to support continuous improvement.
Accountable Officers must establish performance standards and targets for their assets,
considerate of available resources that form part of their broader service planning goals.
Accountable Officers must also establish and maintain management processes to regularly record,
monitor and assess performance, and use those results to improve performance. Performance
should be monitored by Accountable Officers against their own established asset standards,
targets or benchmarks to establish whether assets are being managed effectively,
underperforming or costly to own and operate.
There are a number of factors to be considered when setting and monitoring targets to assess an
assets performance, including:
service delivery needs;
physical condition;
utilisation;
functionality; and
financial performance.
When comparing performance outcomes against asset standards or benchmarks, the criteria
should be considerate of, where possible, relevant data from other comparable organisations or
assets. The performance and utilisation of assets must be reviewed periodically.
Asset performance monitoring and continuous improvement strategies must also be incorporated
into the overall corporate and strategic planning framework.
12
to ensure that the systems have been implemented and maintained, and are effective in meeting
asset management requirements and responsibilities.
This monitoring should also ensure that the overall asset management system is updated as
knowledge improves and circumstances change.
Commencing in 2020-21 Responsible Bodies must, at least every three years, conduct a
self-assessment of the level of asset management maturity within their organisation, and other
organisations within their annual report, and state this in their annual report. As part of this
self-assessment, Responsible Bodies must evaluate:
the maturity of their asset management systems and practices;
the maturity of their systems and practices against their aspirational target; and
their path towards achieving their aspirational target.
Reporting to government
Reporting to government and central agencies on asset management and performance may be
required to assist government in making informed resource allocation decisions.
There are several asset-related reporting requirements that Accountable Officers provide to
government and central agencies, which can change over time.
Through its asset information management system (AIMS), an Accountable Officer must also
ensure that the organisation can provide relevant asset information and performance data to
government and central agencies as required, and is flexible enough to respond to reasonable
information reporting requests by the Government.
13
3.1.5
Other requirements
Accountable Officers should establish asset management processes that help ensure:
their organisations assets support the services it delivers;
their organisations assets contribute to achieving government outcomes and meeting their
organisations service delivery needs; and
continuous improvement and adaptive learning in managing and maintaining their
organisations assets.
Additionally, Accountable Officers must ensure there are appropriate risk management strategies
and processes to support asset management, including processes to identify and maintain assets
that are at risk of critical service failure.
Accountable Officers should also consider their organisations alignment with the processes and
principles outlined in the international standard ISO 55000 Asset Management Series, as
appropriate.
3.2
Planning
3.2.1
Overview
Accountable Officers should systematically identify their organisations service delivery and asset
needs over time, to establish a plan on how to manage their entire asset base and how to manage
individual assets throughout their lifecycle. This should be based on long-term service planning to
meet future service needs and demand.
Identifying changing asset needs by developing an asset management strategy assists Accountable
Officers to:
identify options and prioritise investment and divestment needs;
develop business cases as appropriate;
undertake cost benefit and real options analyses;
consider non-asset alternatives;
implement the appropriate accounting treatment and requirements for individual assets; and
identify funding options.
3.2.2
14
The asset management strategy should consider various options to achieve the organisations
desired service delivery results, and include an evaluation of the costs, benefits and risks
associated with each option.
The strategy must outline how the Accountable Officer will use the organisations assets to
support its service delivery objectives and incorporate planning for assets (including proposed
upgrades, acquisitions and disposals) over different periods of time (e.g. short term: one to three
years, medium term: four to nine years, and long term: 10 or more years). Accountable Officers
should consider their organisations existing asset base condition, capacity, capability and usage.
They should also consider available resources, funding constraints and competing service and
asset priorities. Accountable Officers should also give consideration to:
the policy, legal and accountability environment the organisation operates in;
the organisations service delivery goals and objectives;
the organisations corporate management and planning framework;
external or market factors (commercial, technological, environmental, or industry implications)
and risks to those factors;
the asset lifecycle, and how assets will be managed throughout the cycle, including the ability
to scale-up, delay acquisition or dispose of assets;
lifecycle costs of the assets;
resource availability;
private sector delivery options;
stakeholder needs;
performance monitoring, risk management processes and skills needed by staff;
the Accountable Officers asset management systems and process;
non-asset alternatives to service delivery;
the need to rationalise operations to improve service delivery or enhance cost effectiveness;
continuous improvement of asset management and adaptive learning within the
organisation; and
current and forecast demand for service delivery.
While addressing these issues, the strategy should be at an appropriate level to the organisation,
commensurate with the size and functions of the organisation.
For some organisations, the asset management strategy may be a single document, whereas for
others, such as asset-intensive organisations, multiple documents may be required.
The strategy is intended to be used for internal management purposes, and must be evaluated by
senior management, and updated where applicable, to ensure it remains suitable and effective.
15
As part of their asset management strategies, Accountable Officers must incorporate asset risk
management planning, which describes the risk management strategies and actions
(e.g. treatment plans) to be implemented for assets under their control. Accountable Officers
must continue to monitor and evaluate the effectiveness of their risk management measures on a
regular basis and, if necessary, redefine them.
When developing asset risk management plans, consideration should be given to examining risks
across the whole asset lifecycle. Asset risk management plans should consider inclusion of the
following risks:
physical failure;
operational;
financial;
occupational health and safety;
third party; and
stakeholders.
As part of their organisations business continuity plans, required under the Standing Directions,
Accountable Officers should develop procedures for identifying and responding to incidents and
emergency situations, and maintaining the operational continuity of critical assets for service
delivery.
3.2.3
16
demonstrate the need for additional investment. Business cases should factor in all relevant
capital and output costs, including any output price increase required to offset additional capital
assets charge and depreciation costs (if applicable).
3.2.4
Other policies
Other policies developed by or on behalf of Accountable Officers, such as financial, human
resources, risk management, planning, occupational health and safety, and knowledge
management should consider current asset management requirements so that these
requirements are evaluated, and where relevant, incorporated into key plans and practices across
the organisation.
Accountable Officers should also consider their organisations alignment with the processes and
principles outlined in the international standard ISO 55000 Asset Management Series as
appropriate.
3.3
Acquisition
3.3.1
Overview
Acquisition decisions should be taken within an integrated planning framework that takes account
of service delivery needs, corporate objectives, financial and budgetary constraints and the
Governments overall resource allocation objectives. During the acquisition phases Accountable
Officers must also adequately consider, on behalf of their organisation:
solutions to support service delivery that do not involve asset acquisitions;
risks in acquiring assets or delivering services;
the appropriate procurement method; and
the appropriate approval mechanism prior to acquisition.
3.3.2
Acquisition process
As part of the acquisition process, an Accountable Officer must consider the:
organisations asset management strategy;
nature of the organisations assets to be acquired or created;
market conditions and the implications for the organisations asset cost (is it a buyers or
sellers market?);
industry capacity (i.e. the number of potential contractors or suppliers capable of supplying the
assets);
industry standard (how the assets are normally procured in the industry);
suitability of contractors or suppliers;
available resources to manage procurement of the organisations asset; and
relevant internal/external approval processes (e.g. Government approval processes as part of
the annual State Budget).
To ensure a cost effective approach, non-asset solutions to service delivery should be considered
before deciding to purchase fixed assets. Additionally, private sector engagement options should
also be considered, such as the involvement of the private sector in the acquisition process or
delivery of services.
17
3.3.3
Procurement method
Choosing an appropriate acquisition method is fundamental to the feasibility, development and
ultimate success of the procurement. Accountable Officers are responsible for choosing the most
appropriate method , and for identifying, assessing and allocating potential risks and optimising
investment return. The acquisition should be undertaken based on the asset management
strategy that the Accountable Officer has undertaken as part of their organisations service
delivery planning.
The method used to acquire assets should enable:
appropriate allocation of risks and obligations to relevant parties;
the definition of respective roles of those involved; and
the required outcomes of the acquisition process.
The choice of procurement method should be made by considering costs, financial benefits, risks,
delivery times and the period for which the asset is needed. The appropriate approval processes
for acquiring an asset should also be followed.
3.3.4
Other requirements
Accountable Officers should consider their organisations alignment with the processes and
principles outlined in the international standard ISO 55000 Asset Management Series as
appropriate.
3.4
Operation
3.4.1
Overview
During the operational phases to ensure their organisations assets are appropriately managed,
Accountable Officers need to consider:
asset monitoring and asset performance;
maintenance needs;
asset valuations;
asset utilisation; and
asset functionality.
3.4.2
18
3.4.3
Maintenance of assets
An appropriate maintenance program can sustain or extend an assets useful life. The benefits of
effective asset maintenance include:
a long-term reduction in lifecycle costs;
better asset performance and service;
the optimisation of asset life; and
improved public perception of the assets service and safety standards.
Planning for asset maintenance enables targeted action to be undertaken in a timely and cost
effective manner. This helps the organisations asset portfolio to remain productive for the lowest
possible long-term cost.
Accountable Officers must establish systems and processes for undertaking their organisations
maintenance activities.
Accountable Officers should ensure asset maintenance tasks are focused on high priority assets.
High priority assets might include those that affect health and safety or are operationally critical
while low priority assets might include those that have little value or have a relatively short
expected life. There may also be assets that require little or no maintenance, for example
furniture. Consideration will therefore need to be given to the resources Accountable Officers
allocate to maintenance tasks.
The maintenance program must be regularly reviewed by the Accountable Officer to determine
whether the maintenance effort is being allocated to the appropriate assets and is providing the
desired outcomes. As part of this review, the available resources for maintenance must be
examined to ensure that assets are maintained to the standard established by the Accountable
Officer with consideration for the impacts on service delivery.
Where asset management activities are devolved or outsourced including to entities excluded
from the Standing Directions, Accountable Officers should ensure that appropriate mechanisms
are in place to confirm that the service providers or entities excluded from the Standing Directions
are maintaining their organisations assets to an established acceptable standard, balanced
against appropriate service delivery trade-offs over time.
Information management
Comprehensive, accurate and up-to-date information on assets is vital to effective asset
management.
Access to information is important to ensure Accountable Officers can make informed decisions
about the physical and nancial performance of assets they control.
Accurate recording, identification, valuation and reporting procedures must be established so that
informed decisions to maintain, modify, rehabilitate, nd an alternative use for, or dispose of an
asset can be made. An Accountable Officer or asset manager cannot make these decisions
effectively if they do not have ready access to the necessary information. As such, Accountable
Officers must establish asset information management systems (AIMS),which includes asset
registers.
Under section 44B of the FMA asset registers are required to be established. The register of assets
is to be in the form, and contain the information, determined by the Minister for Finance after
consultation with the Victorian Managed Insurance Authority.
An AIMS must maintain up-to-date asset information as well as an historical record of both
financial and non-financial information over each assets lifecycle for the purpose of:
asset planning;
19
Record keeping
As part of the AIMS, Accountable Officers must establish appropriate record keeping processes, to
meet operational needs and to satisfy relevant accounting standards and disclosure requirements,
including for their organisations contingent and intangible assets. Effective record keeping will
support the successful operation of the asset management system and associated processes.
It will also support the Accountable Officer in undertaking any internal or external audit or review
that may be conducted of their organisations asset management practices.
3.4.4
Asset valuation
As part of asset valuation, Accountable Officers must document policies and procedures for the
revaluation of assets.
These standards are available on the Australian Accounting Standards Board (AASB) website:
www.aasb.gov.au
20
Accountable Officers are also required to adhere to the applicable Financial Reporting Directions
(FRDs) issued by DTF that relate to asset management, namely:
FRD 103D Non-financial physical assets;
FRD 106 Impairment of assets;
FRD 109 Intangible assets;
FRD 115 Non-current physical assets First time adoption; and
FRD 117 Contributions of existing non-financial assets to third parties.
The FRDs are available on the DTF website:
www.dtf.vic.gov.au/Publications/Government-Financial-Management-publications/Financial-Repo
rting-Policy/Financial-reporting-directions-and-guidance
Accountable Officers should also be cognisant of the Valuation Guidance which assists valuers and
preparers in understanding the methodology and requirements for the measurement and
valuation of non-current physical assets:
http://www.dtpli.vic.gov.au/property-and-land-titles/valuation/government-valuations/asset-valu
ations-for-government#non-currentphysicalassets
3.4.5
Accountable Officers should also consider their organisations alignment with the processes and
principles outlined in the international standard ISO 55000 Asset Management Series, as
appropriate.
3.5
Disposal
Decisions to dispose of an asset require thorough examination and economic appraisal. Like
acquisition decisions, they should be taken within an integrated planning framework that takes
account of service delivery needs, corporate objectives, nancial and budgetary constraints and
the Governments overall resource allocation objectives.
Planning for disposal should start well before the economic life of the asset has ended or the need
for the service has finished and should incorporate consideration of unplanned disposals or
destruction of assets.
Accountable Officers must comply with relevant approval processes and, where possible, select a
disposal method including retirement, replacement, renewal or redeployment, that maximises the
financial benefits associated with the disposal.
Accountable Officers should also consider their organisations alignment with the processes and
principles outlined in the international standard ISO 55000 Asset Management Series as
appropriate.
21
4.
Key terms/definitions
22
Non-physical assets (intangible assets): are identifiable non-monetary assets without physical
substance. They are generally long-term resources of an organisation and derive their value from
intellectual or legal rights, and from the value they add to the other assets.
Common examples include patents, copyrights, trademarks, designs, computer software and
licenses.
Organisation: means any public body or Department.
Physical assets: comprise land, buildings, infrastructure, plant and equipment, cultural collections,
natural resources and information and communication technology (ICT) assets.
Public entity: has the meaning as defined in the Public Administration Act 2004.
Real option: the rightbut not the obligationfor an investor to undertake certain business
initiatives and actions in the future to optimise the opportunities and risks of an investment over
its lifecycle and mitigate the risks that an investment will be regretted. Real options do not
eliminate the change of regret but seeks to limit the extent of the regret.
Risk: the effect of uncertainty on objectives.
Risk management: the coordinated activities to direct and control an organisation with regard to
risk.
Responsible Body: has the meaning as defined by the Standing Directions of the Minister of
Finance. Responsible Body means:
in a government department, the Accountable Officer; and
every other public sector agency, the board.
Useful life: the period over which an asset is expected to provide the organisation with service.
Utilisation: how intensively an asset is being used to meet the Accountable Officers service
delivery objectives in relation to the assets potential capacity.
23
The following details the mandatory requirements Responsible Bodies and Accountable Officers
must meet to allow for full attestation of compliance with the framework. It does not include asset
management requirements covered by other frameworks, for example meeting Australian
Accounting Standards.
In cases where assets are managed by multiple agencies within a portfolio, Responsible Bodies may
not need to attest to compliance with some mandatory requirements of the framework for some
assets when another agency within the portfolio has a clearly defined responsibility for meeting
that mandatory requirement.
Chapter Area
Requirement
3.1.2
Resourcing and
skills
Governance
24
Chapter Area
Requirement
3.1.2
Allocating asset
management
responsibility
3.1.3
3.1.4
Attestation
requirements
Monitoring asset
performance
Refer to provisions in the Standing Directions on the role of the Responsible Body when the agency has been exempt from audit
committee requirements..
25
Chapter Area
3.1.4
Requirement
Asset management Accountable Officers must establish systems and processes for
system
monitoring the performance of both:
performance
their assets; and
the overall asset management systems themselves;
Reporting to
Government
3.1.4
3.1.5
Other
Requirements
Planning
3.2.2
26
Chapter Area
Requirement
3.2.2
Risk management
and contingency
planning
Acquisition
3.3.1
Overview
Operation
3.4.2
Monitoring and
preventive action
27
Chapter Area
Requirement
3.4.3
Maintenance of
assets
Information
management
3.4.3
3.4.3
Record keeping
Asset valuation
Disposal
3.5
28
Appendix 2 - Guidance
Chapter
Area
Guidance
Leadership and accountability
3.1
3.1.1
3.1.1
3.1.2
3.1.4
3.1.4
3.1.4
Promotion of asset
management
Allocating asset
management
responsibility
Monitoring asset
performance
Asset management
system performance
Key performance
indicators
29
Chapter
Area
Guidance
3.1.5
Other requirements
Planning
3.2.1
Overview
Asset management
strategy
framework;
external or market factors (commercial, technological,
needed by staff;
the Accountable Officers asset management systems and
process;
30
Chapter
Area
Guidance
non-asset alternatives to service delivery;
the need to rationalise operations to improve service delivery or
Risk management
Planning for
uncertainty and using
real options
3.2.3
Business cases for new All asset proposals seeking additional funding from government or
seeking private sector involvement should be developed in
asset proposals
accordance with guidelines and methodologies endorsed by the
Government and DTF.
When developing business cases for new asset proposals,
organisations should utilise information they have collected through
their AIMS and asset management strategy to demonstrate the need
for additional investment.
Business cases should factor in all relevant capital and output costs,
including any output price increase required to offset additional
capital assets charge and depreciation costs (if applicable).
3.2.5
Other policies
Acquisition
3.3.1
Overview
31
Chapter
Area
Guidance
3.3.2
Acquisition process
Procurement method
Operation
3.4.3
Maintenance of assets Accountable Officers should ensure asset maintenance tasks are
focused on the higher priorities, within the available resources.
Where asset management activities are devolved or outsourced
including to entities excluded from the Standing Directions,
Accountable Officers should ensure that appropriate mechanisms
are in place to confirm that the service providers or entities excluded
from the Standing Directions are maintaining their organisations
assets to an established acceptable standard, balanced against
appropriate service delivery trade-offs over time.
3.4.3
Information
Management
Other requirements
3.4.5
Disposal
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Chapter
Area
Guidance
Decisions to dispose of an asset require thorough examination and
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